Booms and Busts

Stolyarov reviews Robert P. Murphy’s The Politically Incorrect Guide to the Great Depression and the New Deal (2009).

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E.

Recorded at the Mises Circle in Newport Beach, California, November 14th, 2009. Sponsored by Louis E. Carabini, Saturday.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

"As well as repudiating the Mississippi Union Bank bonds in 1840, the state effectively repudiated the debts owed to the state banks."

Bailouts cause malinvestments that lower real output, beginning the cycle again. This cannot continue forever: it will eventually result in a runaway-inflationary depression.

The word from Washington is that things are looking up. The citizens in Segovia used to hear the same thing from Rome.